Critical Illness Rider Should Be Required In Term Plans.

When one thinks of life insurance they must consider opting for a term plan. This is the simplest and most cost effective insurance productTerm insurance plans are designed to ensure that in the event of the policy holder’s death, the family gets the sum assured (the cover amount). Under the term plan, the policyholder has to pay premium regularly or a one-time payment depending upon the type of policy purchased. A sum of money (death benefit) is paid to the nominee if the policyholder dies during the period for which he/she is insured (policy term). The policyholder also gets a range of options to get enhanced protection. Some term plans also provide protection to the policyholder in the form of cash payouts on diagnosis of major illnesses like cancer, or heart attack or organ failure. Critical illness can dry out a person’s finances in an unprecedented way and since they come without a warning, its best to have a term plan with a critical illness benefit.

Five Reasons why your term plan must come with a critical illness benefit:

1.Acts as an income replacement 2.Premiums stay the same 3.Double tax Benefits 4.Gives you a large cover that can take care of medical & day-to-day expenses 5.Increases chances of survival

term insurance plan that comes with a critical illness benefit can cover both hospitalization and non-hospitalization expenses too and may also provide much needed cash flow during the recovery period. Alternatively, you can go for a higher health cover as a regular health cover provides a much wider coverage.

When one is very ill, the medical bills mount up. Things get worse if the patient happens to be the sole bread earner as then there is no source of income at all and the going gets tough.

Take cancer, for instance, that alone accounts for 7 per cent of deaths in India. The cancer drug Herceptin, one of the most effective drugs for breast cancer, costs Rs 75,000- Rs 1 lakh for a vial. Patients typically need anywhere from 6 to 17 vials for treatment. Similarly, Avastin, another popular drug, costs anywhere between Rs 25,000 to Rs 50,000 a cycle, with patient requirements being 5 to 10 cycles per course. With the cost of treating this disease running into several lakhs of rupees, cancer patients often prefer to abandon the treatment rather than run into penury. Oncologists have plenty of depressing stories about families who have been completely destroyed in meeting the mounting treatment costs.

Therefore, it is important for all of us to be prepared to handle such a situation and insurance builds our confidence to face such a challenge. With a critical illnesscover along with a term plan, one can get a tax-free lump sum in a one-off payment if one is diagnosed with a serious illness that is covered by insurance companies.

You should use it in such a way that it pays off your mortgage, debts or any other liability you may have, or even pay for alterations to your home like getting a hospital bed installed or a wheel chair – should one require it.

The critical illness benefit will pay out if one goes through the specific medical conditions listed on the policy. For instance some term plans cover critical illnesses like heart attack, stroke, certain types and stages of cancer and conditions such as multiple sclerosis. Many policies may also waive off future premiums if one is permanently disable. This is because on permanent disability it is most likely that you may lose your source of stable income and may not be able to pay future premium.

Points to consider before going in for critical illness cover:

-Read the list of all critical illness insurance coverages included in your policy.

– Different companies offer risk coverage towards different critical illnesses. Study them carefully before incorporating them.

While the maximum term of a plan is 30 years, it is interesting to note that the coverage continues even after claiming benefit on select critical illness. Besides, premium paid is eligible for deduction under section 80C & section 80D (the overall limit of deduction for investment u/s 80C & u/s 80D of the Income Tax Act, 1961 are Rs. 1,50,000 & Rs. 25,000 respectively, subject to conditions mentioned therein).

LIC Jeevan Labh (Table No 836) Plan Details.

If you are planning your tax-saving investments now,Life Insurance Corporation of India (LIC) has launched a new limited premium paying, non-linked, with-profits endowment plan called Jeevan Labh. The plan is being sold on the basis of the limited premium paying feature. So, although premium is paid for a limited period,policyholders can enjoy life cover for the entire term of the policy. The plan is available from policy term of 16, 21 and 25 years with premium paying term of 10, 15 and 16 years respectively. The maximum age at maturity is 75 years. The minimum basic sum assured is Rs 2 lakh, while there is no limit on the maximum. On maturity of the policy and the policy holder surviving to the end of the policy term, basic sum assured along with vested simple reversionary bonuses and final additional bonus, if any, shall be payable. The highlight of the plan is that premium is payable for limited period and risk is covered for the whole policy term. The plan is suited to those who want premium commitment for short duration having life coverage and benefits for a longer period. On payment of higher premium the plan also offers two riders, as an option. These are the Accidental Death and Disability Benefit Rider and New Term Assurance Rider. The riders offer an additional sum assured, apart from the basic sum assured, in case the policyholder dies during the policy term. But there are limits with regard to the sum assured for the both riders. The policy offers guaranteed returns, but the returns are minimal.

Key Features

o    High Bonus Attracting Plan

o    Premiums need to be paid for less number of years than Maturity year

o    Ideal Plan for planning Child’s Education and Marriage

o    Options to avail accidental benefit and term riders

o    Paid premiums are exempted from income tax under 80C

o    Maturity amount is tax free under 10 (10D)

Plan Parameters

 

Minimum Age at Entry 8 Years (Completed)
Maximum Age at Entry 59 Years for 16 Year Term
54 Years for 21 Year Term
50 Years for 25 Year Term
Premium Paying Mode Yearly, Half Yearly, Quarterly, Monthly (ECS Only)
Policy Term (Premium Payment Term) 16(10), 21(15), 25(16)
Basic Sum Assured 2,00,000 and above (in multiple of 10,000)
Premium Payment Mode rebate 2% on yearly, 1% on Half Yearly, Nil on Quarterly & Monthly
Rebate on High Sum Assured
(Per 1000 of Sum Assured)
0% up to 4,90,000
1.25% for 5,00,000 to 9,90,000
1.50% for 10,00,000 to 14,90,000
1.75% for 15,00,000 and above
Loan After 3 years
Surrender After 3 years of full premium payment

Health Insurance Is More Easy To Understand Now With IRDAI.

Now IRDAI taken a one more Brilliant step.IRDAI will launch a sitefor Policy Holders and all People who are looking for policies. In this site IRDAI provides all details about the Insurance in Brief and common people can gain and increase their knowledge about theInsurance and the processes. Insurance watchdog – Insurance Regulatory and Development Authority (IRDAI) has announced its decision to float a new consumer education portal to educate general public and insurance policyholders on various aspects of insurance.
The new website expected to go live on Monday will have complete information that includes, cost of treatment and treatment facility offered across 35,000 hospitals that are registered with insurers for providing cashless payment facility.
“ It’ s a unique initiative of Irdai which going forward will helpinsurance companies and hospitals and all the insured under varioushealth insurance schemes to get all relevant data at one place,” IRDAI  member Nilesh Sathe told PTI.
As part of the initiative, every hospital associated with insurers has been given a ‘ Unique Identification Number’ (UIN). The UIN will enable the IRDAI-promoted Insurance Information Bureau (IIB) to keep a tab on the patterns of health insurance claims from all those hospitals.
The creation of the Web site is part of a series of initiatives under the ‘ BimaBemisaal’ for creating awareness about insurance.

Government Will Plan To Reduce PPF,NSC and FD Interest Rates.

The government is set to reduce interest rates on small savings products such as public provident fund and National Savings Certificateover the next few days – a move that willimpact returns on your bank fixed deposits but also pave the way for banks to pare lending rates in the coming months and reduce the EMI burden.
The new formula will see small savings rates linked to returns ongovernment securities of comparable maturity, with the reduction expected to be up to 50 basis points (100 basis points equal a percentage point). The finance ministry is finalizing product-specific rates and sources said the impact would be higher in case of maturity period of less than five years. There are indications that senior citizens and women will be protected with products such as the Sukanya Samriddhi Yojana spared the axe, at least for the moment. The new rates are expected to be notified over the next few days with the government set to announce quarterly revision instead of an annual reset, which is the norm currently. Banks are expected to follow thesmall savings rate cut with lower fixed deposit rates, which over a period of a few months may translate into lower lending rates. In the past, lenders have been reluctant to pass on the benefit of lower rates to borrowers. TheReserve Bank of India and banks have been seeking a reduction in small savings rates, arguing that PPF and other products offered higher returns when compared with fixed deposits, resulting in a flight of funds to the government schemes . As a result, banks have been forced to maintain higher deposit rates, making it difficult for them to pass on the benefits of lower policy rates. Bankers have said higher small savings rates have meant that lending rates have been cut by a lower extent compared to RBI’s policy rate reduction of 125 basis points last year. Although the move may trigger a fall in returns on your savings, it is seen as a reform move by the government, which recently announced a plan to end subsidies to the high-income segment. The reduction also comes at a time when the middle class has become more comfortable investing in debt and equity mutual funds, which over the past decade have emerged as an attractive savings tool.

Pension Fund Regulator Organise NPS Service Week

Pension fund regulator PFRDA will organise a week-long service-oriented campaign, aimed at building awareness and improving information dissemination towards flagshipNational Pension System (NPS), from February 1.
Pension Fund Regulatory And Development Authority (PFRDA), which will be completing two years of its statutory status on February 1, has “observed” that the subscribers/employees in state governments as well as the Centre are not fully aware of various functions and facilities available under the NPS. “A large number of the queries/grievances received from these subscribers pertain to elementary issues like non-receipt of Statement of Transaction, I-PIN, T-PIN etc. In order to promote awareness regarding importance of updation of latest contact details in Permanent Retirement Account Number ( PRAN), the regulator said it will be organising the ‘NPS Service Week’ from February 1-6 in all nodal offices under the Centre and state governments. During the service week, the activities to be undertaken include printing of transaction statement for the subscribers on specific request and updation of subscribers details. NPS is an attempt towards finding a sustainable solution to the problem of providing adequate retirement income to every citizen of India. NPS has been implemented for all government employees (except armed forces) joining central government on or after January 1, 2004. Most of the state/UT governments have also notified the NPS for their new employees. It has been made available to every Indian citizen from May 2009 on a voluntary basis. Currently, NPS has more than 1.13 crore subscribers with total Asset Under Management ( AUM) of more than Rs 1.08 lakh crore.

Life Insurance Premium Income Gain 9% In April-November.

The life insurance industry reported 9% increase in overallannual premium equivalent in April-November, mainly due to volatile market conditions.
The growth by supported by good show by large private sector companies. In the period, overall APE- a measure to normalize policy premium into the equivalent of regular annual premium- including individual and group business for private players was up 16% to Rs 1,25,563 crore andLife Insurance Corporation up 4% to Rs 1,50,456 crore. “Among large players, ICICI Prudential Life and Max Life, which have been more volatile in FY2016 YTD, reported you decline in individual business in November leading to weak growth for the industry. Reflecting slowdown in capital market-driven inflows in the life insurance sector, Max India and ICICI Prudential Life reported a decline in income. ICICI Prudential Life grew overall adjusted premium 17%. The insurer has been the fastest-growing among large players supported by its focus on ULIPs. In November, HDFC Life saw individual APE go up 14%, Kotak Life 41% yoy and SBI Life 45%. Bucking the trend, Bajaj and Birla reported APE growth in November 2015. Both the players have reported decline in APE for the past several quarters. Bajaj Life bounced into growth in 1QFY16 to slip back into the negative trajectory in 2QFY16. Max Life reported 8.4% decline in individual APE during November 2015.

Guaranteed Pension Plan Launched In India.

IndiaFirst Life Insurance, a joint venture between Bank of Baroda, Andhra Bank and Legal and General (UK), announced the launch of the IndiaFirst Guaranteed Retirement Plan-a non-linked, participating, endowment, deferred pension plan. The plan offers a guaranteed return of 9% on total premiums paid during the initial years, and the benefit of participating in the company’s profits in the later years.
“The current popular retirement plans available in the market are mostly unit-linked plans. The IndiaFirst plan is designed to address the needs of people who would want to create an assured pool for retirement,”
Policyholders can select a policy term depending upon their requirement and receive the funds between 40-80 years of age to purchase an annuity. The policyholder gets a tax benefit on the premiums paid, as per section 80(CCC) of Income Tax Act, 1961.
It offers policyholders flexibility in premium payment. A customer can choose to pay one time, under the single premium mode, or pay for a limited period of 5 to 10 years for a plan term of 10 to 35 years, or select a payment and plan term of 10 years to anytime between 15 or 35 years.
Customers also have the option to pay in monthly/ quarterly/ half yearly/ yearly intervals.
“Apart from providing a balance of guaranteed return and an upside through bonuses, this plan also provides customers with a lot of flexibility to plan for retirement irrespective of age.

LIC Jeevan Tarun Children Plan (Table 834)

LIC Jeevan Tarun Policy (Plan No.834) is an optional money back policy introduced by LIC of India. LIC Jeevan TarunMoney back policy is a non-linked, with profits plan which is specially designed for children to meet their financial problems and their educational needs. LIC Jeevan Tarun Policy (Plan No.834) is a limited premium payment money back plan. LIC JeevanTarun money back Plan No.834 is a flexible plan which provides all types of benefits such as Death benefits, Maturity benefits, Survival benefits. Under this LIC Jeevan Tarun Policy 834LIC’s Premium Waiver benefit rider is also available by paying additional premium.

Under this LICJeevan Tarun Money back planMaturity Benefit is Payable at the age of 25 years only and Survival benefits are payable for the last five years only i.e., at the age of 20 to 24 years. If the policyholder has chosen for Survival Benefits then the Policyholder can opt for any of the four options provided by LICJeevan Tarun Plan which is tabulated below. 

Option Name Survival Benefits Maturity Benefits
Option 1 No Survival Benefit 100% of Sum Assured
Option 2 5% of Sum Assured every year for 5 years 75% of Sum Assured
Option 3 10% of Sum Assured every year for 5 years 50% of Sum Assured
Option 4 15% of Sum Assured every year for 5 years 25% of Sum Assured
Entry Age (in Years) ·         Minimum – 90 days (Completed)

·         Maximum – 12 years (last birthday)

Maximum Maturity Age ·         Maximum – 25 Years (last birthday)
Policy Term ·         (25 – Entry Age ) (in years)
Sum Assured (SA) ·         Minimum – Rs. 75,000

·         Maximum – No limit

      Note: 

·         (From Rs. 75,000 – 1,00,000) – SA (in multiples of Rs. 5000)

·         Above Rs. 1,00,000 – SA (in multiples of Rs. 10,000)

Premium Paying term (PPT) ·         (20 – Entry Age) (in years)

LIC Jeevan Tarun Policy (Plan No.834) Eligibility Conditions

LIC Jeevan Tarun Policy (Plan No.834) Benefits

Under this LICJeevan Tarun optional Money back policy 834 survival benefits, maturity benefits, death benefits, rider benefits are  available. Detailed explanation about benefits of LIC Jeevan Tarun Plan 834 are given below.

Death Benefits: 

Policy Anniversary coinciding with/following completion of ages Percentage (%) of Sum assured to be paid as Survival Benefit
Option 1 Option 2  Option 3 Option 4
20 to 24 years  Nil  5% each year 10% each year 15% each year

Note: 

  • SumAssured on deathdefined  as higher of 10 times AP (Annualized premium) or absolute amount assured to be paid on death i.e., 125% of Sum assured.
  • This death benefit shall not be less than 105% of total premiums paid as on date of death.

Survival Benefits: 

Survival benefits are payable for the last five years of Policy term. A fixed percentage of Sum assured is payable to the Policyholder every year. The fixed percentage of sum assured depends on the option chosen by the policyholder. Under this LICJeevan Tarun optional Money back plan 834 there are four options are available to choose. Four options of Survival benefits are given below.

Maturity Benefits:

  • Under Maturity benefit, the policyholder will receive the Sum Assured on Maturity + Vested Simple Reversionary bonuses and Final Additional Bonus (if any). 
  • Sum Assured on maturity depends on survival benefit in which the option chosen by policyholder. If Policyholder opt for any of the four options then the maturity benefits given to policyholder are as follows.
Option Name Maturity Benefit
Option 1 100% of Sum Assured
Option 2 75% of Sum Assured
Option 3 50% of Sum Assured
Option 4 25% of Sum Assured
Entry Age ·         Minimum – 18 years(Completed)

·         Maximum – 55 years(Nearest birthday)

Term of rider ·         20 – Age of child at the time of opting the rider
Maximum Cover ceasing age ·         70 years (Nearest birthday)

Premium Waiver BenefitRider:

On Payment of additional Premium LIC’s Premium Waiver Benefit Rider is provided to the policyholder. This Premium Waiver Benefit Rider is an Optional rider which can be opted along with basic plan. Terms and Eligibility Conditions of LIC’s Premium Waiver Benefit Rider are tabulated below.

LIC New Money Back Plan (820)

LIC’s New Money Back Plan-20 years is a participating non-linked plan which offers an attractive combination of protection against death throughout the term of the plan along with the periodic payment on survival at specified durations during the term. This unique combination provides financial support for the family of the deceased policyholder any time before maturity and lump sum amount at the time of maturity for the surviving policyholders. This plan also takes care of liquidity needs through its loan facility.
Benefits:
Death benefit: On death during the policy term provided the policy is in full force, death benefit, defined as sum of “Sum Assured on Death” and vested Simple Reversionary Bonuses and Final Additional Bonus, if any, shall be payable. Where, “Sum Assured on Death” is defined as higher of 125% of the Basic Sum Assured or 10 times of annualized premium. This death benefit shall not be less than 105% of the total premiums paid as on date of death.
The premiums mentioned above exclude tax, extra premium and rider premium, if any.
Survival Benefits: 
In case of Life Assured surviving to the end of the specified durations 20% of the Basic Sum Assured at the end of each of 5th, 10th & 15th policy year.
Maturity Benefit: 
In case of Life Assured surviving the stipulated date of maturity, 40% of the Basic Sum Assured along with vested Simple Reversionary Bonuses and Final Additional Bonus, if any, shall be payable.
Participation in Profits: 
The policy shall participate in profits of the Corporation and shall be entitled to receiveSimple Reversionary Bonuses declared as per the experience of the Corporation, provided the policy is in full force.
Final Additional Bonus may also be declared under the policy in the year when the policy results into a claim either by death or maturity, provided the policy has run for certain minimum term.
Optional Benefit:
LIC’s Accidental Death and Disability Benefit Rider: LIC’s Accidental Death and Disability Benefit Rider can be opted for under an inforce policy at any time within the premium paying term by payment of additional premium and the cover will be available throughout the policy term provided the Policy is inforce for the full Sum Assured as on date of accident. In case of accidental death, the Accident Benefit Sum Assured will be payable as lumpsum along with the death benefit under the basic plan. In case of accidental permanent disability arising due to accident (within 180 days from the date of accident), an amount equal to the Accident Benefit Sum Assured will be paid in equal monthly instalments spread over 10 years and future premiums for Accident Benefit Sum Assured as well as premiums for the portion of Basic Sum Assured which is equal to Accident Benefit Sum Assured under the policy, shall be waived.
However, on surrender of an inforce basic policy (which has acquired Surrender Value) to which this rider is attached, a proportion of additional premium charged in respect of cover after premium paying term shall be refunded.For more details visit on : http://www.thepolicykart.com or contact us on +91 7319758961.

LIC New Endowment Plan Review.

LIC’s New Endowment Plan is a participating non-linked plan which offers an attractive combination of protection and saving features. This combination provides financial support for the family of the deceased policyholder any time before maturity and good lump sum amount at the time of maturity for the surviving policyholders. This plan also takes care of liquidity needs through its loan facility.
Benefits:
Death benefit: In case of death during the policy term provided all due premiums have been paid Death benefit, defined as sum of “Sum Assured on Death” and vested Simple Reversionary Bonuses and Final Additional bonus, if any, shall be payable. Where, “Sum Assured on Death” is defined as higher of Basic Sum Assured or 10 times of annualised premium. This death benefit shall not be less than 105% of all the premiums paid as on date of death.
Where premiums exclude service tax, extra premium and rider premiums, if any.
Maturity Benefit: Basic Sum Assured, along with vested simple reversionary bonuses and Final Additional bonus, if any, shall be payable in lump sum on Survival to the end of the policy term provided all due premiums have been paid.
Participation in Profits: The policy shall participate in profits of the Corporation and shall be entitled to receive Simple Reversionary Bonuses declared as per the experience of the Corporation, provided the policy is in full force.
Final (Additional) Bonus may also be declared under the policy in the year when the policy results into a claim either by death or maturity, provided the policy has run for certain minimum term.
Optional Benefit:

LIC’s Accidental Death and Disability Benefit Rider:  LICs Accidental Death and Disability Benefit Rider is available as an optional rider by payment of additional premium. In case of accidental death, the Accident Benefit Sum Assured will be payable as lumpsum along with the death benefit under the basic plan.  In case of accidental permanent disability arising due to accident (within 180 days from the date of accident), an amount equal to the Accident Benefit Sum Assuredwill be paid in equal monthly installments spread over 10 years and future premiums for Accident Benefit Sum Assured as well as premiums for the portion of Basic Sum Assured which is equal to Accident Benefit Sum Assured under the policy, shall be waived.